The National Council of Public Finance ('CNFP') has been created by the law of 12 July 2014 on the coordination and governance of public finances. The creation of the CNFP falls within the context of setting up independent monitoring institutions at the national level as result of the reformed economic governance framework in Europe. The main objective of monitoring institutions is to contribute to a better governance of public finances through regular public assessments.
The CNFP is called upon to evaluate the rules the Government is required to follow when formulating its fiscal policy in the context of the annual draft budget law as well as the draft multi-annual programming law. The CNFP is also asked to assess macroeconomic and budgetary forecasts that are used in the context of fiscal programming. It notably requires the CNFP to monitor the application of the correction mechanism in the presence of a significant deviation between actual public finance developments and the trajectories foreseen by fiscal rules.
Members of the CNFP are:
- Anouk AGNES and Romain BAUSCH, proposed by parliament;
- Patrick GRAFFE, proposed by the Court of Auditors;
- Marc WAGENER, proposed by professional chambers representing employers (commerce, agriculture and trades);
- Norbert TREMUTH, proposed by professionel chambers representing employees and civil servants;
- Délia NILLES and Yves NOSBUSCH, proposed by the government.
The CNFP held its first meeting on 12 November during which Romain BAUSCH was elected as its chairman.
Work programme for the coming year
At its second meeting which was held on 27 November, the Council adopted its work programme for the coming year. It consists of two public assessments: a first assessment of the Luxembourg public finances in the context of the Stability and Growth Programme 2015-2019 that the Government to be submitted to the European Commission on 30 April 201, a second assessment of the Luxembourg public finances on the basis of the annual draft budget as well as the draft multi-annual budgeting law to be tabled to Parliament in autumn 2015. The CNFP will also in due course conduct more detailed assessments of macroeconomic and budgetary forecasts.
Given that the nomination and constitution of the Council occured at an advanced stage of the budgetary procedure, the members of the CNFP decided unanimously not to proceed to an isolated assessment of the 2015 draft budget. As foreseen in its work programme, the CNFP will carry out a detailed assessment of the multi-annual draft budgeting law in the coming year. In order to organise its work, the CNFP will also shortly set up a permanent secretariat.
On 20 November 2014, the CNFP - through its chairman - also participated at the annual meeting of independent fiscal institutions in Brussels organised by the European Commission. The Council has rapidly engaged in this network of national monitoring bodies in order to exchange information and best practices.